The MicroBanking Bulletin Issue # 3

Publication Date: Jul 1999
Published by: Calmeadow
Document Type: Other (PDF)

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How important is it to lower operating costs to increase efficiency?

This issue of the Micro-banking Bulletin discusses innovative ways of increasing the operating efficiency of microfinance institutions (MFIs). It contains the following articles:

• A methodology for measuring unit loan costs is presented by Gheen et al;
• The second article, by Ruth Goodwin-Groen, discusses how microfinance non-governmental organizations (NGOs) can improve their ability to access funding from commercial banks;
• A commentary regarding the importance of information for corporate governance is authored by Maria Otero;
• The Compartamos case study, by Jennifer McDonald, highlights the importance of improving operating efficiency to balance profitability with the depth of outreach;
• Chuck Waterfield describes Compartamos’ latest innovation, which is to use paperless loan processing technology to enhance productivity;
• The last section of the Bulletin provides statistical analysis and performance ratios for the 86 institutions that participate in the Bulletin, including 16 new programs.